UK Proposes New Tax Framework for DeFi Users

The UK government proposes a new tax framework for decentralized finance (DeFi) users, aiming to simplify compliance and reduce upfront tax burdens. The proposal involves deferring tax liabilities for deposits in DeFi platforms. This initiative, outlined by HM Revenue and Customs (HMRC), could impact cryptocurrency lending and liquidity pools, aligning tax rules with DeFi operations. Ethereum (ETH) and other ERC-20 tokens are expected to be affected.